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Achieving Business ExcellenceBuilding A Winning Culture in Challenging Times

This is a very special workshop• I have a ton to cover and I will go pretty fast.• 80% is in the book.• Please take notes and ask questions.• I am happy to answer any of your questions, offer

advice and recommend books at any time.• Work very hard… take this seriously.

The slides are already posted at:

www.SlideShare.net/johnspence

100+ since 1989

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

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Most people are so busy working IN their business that they do not take any time to work ON their business.

(T + C + ECF) x DE = Success

2

Do you have a clearly focused and well-communicated vision and strategy for growth?

Effective Strategy =

Valued Differentiation x Execution

Just because you have an idea…

Success comes from executing the RIGHT ideas, not just from the planning process itself.

Five Foundations of Effective Strategy

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution 2

The Four – I’s• Ignorance• Inflexibility• Indifference• Inconsistency

Page 2

How to avoid the Four I’s • Aggressive external market focus.• Aggressive customer focus.• Keep the “Main Things” the main things.• Bullish on knowledge sharing and learning.• Teamwork is mandatory – not optional.• Passion and commitment at all levels.• Foster a healthy paranoia.

• Revel in change. 2

• The willingness… even enthusiasm… to change EVERYTHING combined with the wisdom to understand what must NEVER be changed.

The Key To Success in the New Normal…

•Nimbleosity•Nimbo-licious

To get the most from our session together…

It is absolutely critical that you be brutally honest with yourself today.

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So let's get started with a little self-test…

“Simplicity is the ultimate sophistication” Leonardo da Vinci

Breakthrough Strategies GE: 1- 2 or F.S.C. Intel: memory to processors Microsoft: installed base Apple: chaos to elegance????

NITB

IKEA• Cool Design• Pre-designed

rooms• Self-shop• Self-load• Self-deliver• Self-assembly• Low prices

NITB

Dell

BTOJIT

Inventory turnsLogistics vs. Technology

VOC

NITB

Southwest – Dell – Walmart What is the pattern?

• Extreme Efficiency

• Minimize Costs to as close to zero as possible – w/o negative impact

• All focused on delivering customer value

NITB

From the CEO of a little 172 billion dollar company…

Look, what is strategy but resource allocation?

When you strip away all the noise, that’s what it

comes down to. Strategy means making clear-cut

choices about how to compete. You cannot be

everything to everybody, no matter what the size

your business or how deep its pockets. You have

to figure out what to say “NO” to.Jeffrey Immelt

Microsoft • Total World Domination• The Top 5 %• Bet the Company• Require Failure• Managers are Qualified• Perform, Perform, Perform• Shrimps vs. Weenies• Stop the Insanity• Espirit De Corps

From: The Twelve Simple Secrets of Microsoft Management by Thielen

4

Charlie Trotter’s 4

Lessons from seven top CEOs

• Have an outside-in perspective• Be deeply passionate about your job• Understand the importance of culture• Create or adapt next generation

products, processes and solutions• Implement the best ideas regardless of

origin4

From: What the Best CEOs Know by Krames

Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B

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The Toyota Way• Challenging Vision

– We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.

• Kaizen– We improve our business operations continuously, always driving for

innovation and evolution.• Genchi Genbutsu

– We go to the source to find the facts to make correct decisions, build consensus, and achieve our goals at our best speed.

• Respect, Challenge and Help your People and Suppliers– We respect others, make every effort to understand each other, take

responsibility and do our best to build mutual trust.

• Teamwork– We stimulate personal and professional growth, share the opportunities

of development, and maximize individual and team performance. 5

• Lack of TRUST• Lack of candor• Lack of commitment• Lack of accountability• Lack of results

NIBT

What does it take to be a valued member of a team?Develop and display competence.

Follow through on commitments. Deliver required results.

Ensure your actions are consistent with your word.

Stand behind the team and its people.

Be enjoyable to work with.Be passionate about your work and those you serve.

Communicate and keep everyone informed.

Help the other members of the team.

Help members of other teams.

Share ideas, information and credit.Hold yourself 100% accountable.

• D• M• C• C• M• D

irection – vivid, clear, inspiring --- shared

easurements – specific, observable, focused

ompetence – very good at what they do

ommunication – open, honest, courageous

utual Accountability – all team members

iscipline – do this every day

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10 Key Team Competencies:1. Setting clear, specific and measurable goals.

2. Making assignments extremely clear and ensuring required competence.

3. Establishing accountability for high performance across the entire team.

4. Running effective team meetings.

5. Building strong levels of trust.

6. Establishing open, honest and frank communications.

7. Managing conflict effectively.

8. Creating mutual respect and collaboration.

9. Encouraging risk-taking and innovation.

10. Engaging in ongoing team building activities.1 - 10

66

The level of highly satisfied and engaged EMPLOYEES in your

business.

The number one factor in increasing the level of highly satisfied and engaged

CUSTOMERS in your business is…

1,300,000 interviews: Basic 4 + 1

Goal Setting

TrustAccountability

Communications

RECOGNITION

From: The Orange Revolution by Gostick and Elton

NITB

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.

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117

57

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Is Your Company Up To Speed?

Fast Company June 2003

Pages 8 - 9

Leader of the Future

1. Character2. Courage3. Competence4. Communication5. Collaboration6. Compassion7. Contribution

NIBT

Competence

RespectDistrust

Affection TRUST

HIGH

LOWLOW HIGH

Concern

NIBT

The 4 Cs of TrustYou must Consistently

Communicate that you are Competent

and you Care

“I am good at what I do… and I do it because I care about

you.”

Web of Value: VOC + MOT + WOM

Page 8

NIBT

Extreme Customer Focus

VOC

NIBT

Moments Of Truth

Page 8

NIBT

You don’t ASK for referrals…You Earn referrals, then you

ask for them.

Twice weekly surveys for five years of 2,000+ senior managers and executives at:

• IBM• GE• Morgan Stanley• Merck• 3M• Microsoft• CIGNA• Heineken• MasterCard

• Fidelity• Motorola• Ikon• American Express• Progressive• Bank of America• AT&T• SAP• Borders

Keys to effective management…• Communicate clearly• Force the hard decisions• Focus on results• Remain flexible to change• Prove your value to the customer• Force collaboration

• Rigorous but not ruthless…

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From: Think Big – Act Small by Jennings

The Evergreen Project

10 year study of 160 top companies

40 distinct industries

200 management practices

Winners, climbers, tumblers, losers

Winners had an average Total Return to Shareholders of 945%... The

Losers only averaged a TRS of 62%

From: What (really) Works by Joyce, Nohria, Roberson

The Four Primary Practices:1. A sharply focused, clearly communicated and

well-understood strategy for growth.2. Flawless operational execution that

consistently delivers the value proposition.3. A performance-oriented culture that does not

tolerate mediocrity.4. A fast, flexible, flat organization that reduces

bureaucracy and simplifies work.


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The Secondary Management Practices:

• Talent = find and keep the best people.• Key leaders show commitment and

enthusiasm for the business.• Embrace strategic innovation.• Master the power of partnerships.


Score yourself on the 1–10 scale for all eight practices on page 11

Key Drivers of Business Success

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR=104.12

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

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WorkshopPage 13

TolerateNothingLess

From: Practice What You Preach by Maister

Global study:16 countries29 companies139 offices5,589 respondents

What Inhibits Execution?National Survey of 4,000 Senior Executives

4. Inability to work together (21%)3. Company culture (23%)2. Economic climate (29%)1. Holding onto the past /

unwillingness to CHANGE (35%)

In other words…

• In order to succeed you need a high-performance team that embraces a strong culture of disciplined execution and accountability while being nimble, agile and adaptable to changes in the marketplace.

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable ProcessClear / consistent /

relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Renewal

Praise + Celebration and

Eliminate Mediocrity

Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Adjust

Reward / Punish

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Read Pages 15 & 16

Individual Workshop• Go back and look at all of your audits.• Where were your low scores, where were your high

scores – what is the pattern?• Look over your notes – what were the key themes?

What are the most important ideas?• Answers all the questions on pages 17 – 19.• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of Actions and Outcomes.

In teams…

• What do you feel were the FOUR biggest takeaways of the day? The four most important things you learned for creating a successful business?

If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]

My twitter address is: @awesomelysimple

*** Please connect with me on LinkedIn ***Also, you might find value in the ideas I share in my blog. You can sign up for it at:

www.blog.johnspence.com

Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence

Please read page 22